Free Essay: Indian Retail Industry
Indian retail industry is the fifth largest in the world attracting thousands of people from across the globe. The industry has undergone numerous growth and advancements in the last decade with a focus on organized retailing format, spreading out of the nations’ major cities and metros to even Tier II and Tier III cities. It is expected that by financial year 17, the Indian retail industry will be valued at about US$792.84 billion. Currently, there is an increasing demand in real estate and there are also great opportunities that are being created for domestic and international retail companies.
In terms of market price, the Indian retail market is currently valued at approximately US$490 million. According to the latest statistics, the retail market grows at an annual compound growth rate of 6% each year. Thus, it is expected that by 2023, the Indian retail industry will be valued at US$865. The largest shareholder of the retail industry is food and grocery occupying 60% with the mobile and apparel category following in closely.
Another category in the Indian retail industry that has also shown great improvement is the organized retail. In 201 and 2012m, the category commanded seven percent of the industry with a compound annual growth rate of 24%. It is still doing quite well currently and expected to climb to 10.2% market share by 2016 to 2017. The country has got a total of almost one million retailers comprising of small and large size, mainly selling a variety of their products through online portals. E-commerce has been well received in the country and continues to do quite well. In 2013, the online retail industry hit a record US$12.6 billion.
There are quite a number of reasons that has enhanced the steady growth of the retailing industry in India. The country has been able to attract great cumulative funding that has played a major role in the growth of the retail industry. The cumulative funding that the country has been able to attract since 2009 is valued at US$1,650 million. 65% of the funding has been absorbed into the horizontals with 25% to fashion and apparels. In fact, there are quite a number of investments in the Indian retail industry.
Some of the key investments in the industry include Marks and Spencer, Flipkart.com, Metro AG, Reliance Industries, Private Equity among others. Apart from the investments, the government of India has also put in favorable measures to ensure that the interests of investors and consumers are safeguarded against exploitation. This has made the Indian retail market to be a great source of wealth that several investors from around the world are eyeing.
Despite the tremendous growth that has been portrayed, the Indian retail industry still remains an ocean of untapped potential that investors should be looking towards. The major area for growth of the retail industry is e-commerce and several investors who are having plans of venturing into the market need to think in that direction. It is expected that by 2020, online retail in India will hit US$70 billion.
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